Kristalina Georgieva: Head of the International Monetary Fund

the world's monetary system and the world's financial firefighter. Without its help during the COVID crisis, some countries economies would have collapsed. I'm Alian Ververe and this is Seneca's on women to hear. We are bringing you one hundred of the world's most inspiring and history making women you need to hear. Born and raised in Bulgaria, Krystallina Givgiova has held some of the most important jobs in the world.

Before taking the helm at the i m F as Managing Director, she was CEO of the World Bank, and earlier she helped shape the agenda of the European Union while serving as a European Commissioner. Listen and learn why Krystallina Gergiova is one of Seneca's one hundred Women to hear.

I'm just so thrilled to be here today with the Managing Director of the International Monetary Fund, Krystallina ger of She is a friend who have had the great privilege to work with on occasion, and it is just simply wonderful to be able to introduce her to our listeners today. So let me begin, Crystalina by saying that you have been in some of the most important positions, heading them

up both regionally and in global organizations. The European Commission, the CEO of the World Bank, You've led humanitarian and environmental efforts on a global scale, and since October of two thousand and nineteen, you've led the i m F, where you oversee some trillion dollars in loans, only the second woman to lead the i m F, succeeding Christine Legarde, and I think it would be good at the outset if you could tell our audience what the i m

F does. Let me first thank you very much for the chance to engage with your audience and for the great work you do to promote gender equality. The IMF is an organization of a hundred and ninety members, and what it does is to provide support two countries when they are in trouble. In that sense, we are the

world's first responder during financial and economic crisis. It is also the organization that keeps a hand on the pulse of the world economy and the most authoritative source of data and analysis of how well is the world economy doing. We have three big lines of work. First, surveyors, we survey individual countries and the world economy. Second, program support We finance countries that need balance of payment injection of financial means. And third, we help countries build strong institutions

so they can cope with the problems they face. Very interesting fun fact, during the pandemic in twenty we got our newest member, the small country of Andorra joined And the reason I'm bringing it up is because it is such a good indication how important is for the world for us to be together in good and bad times. Well, I think that's an excellent point, and I think your

explanation is very well received. And I wondered, since you mentioned the PA endemic, there must be tremendous pressure on the I m F now because of the severe economic downturn. Of course, there is We were established in the midst of the Second World War by wise leaders who who decided that to build pieces stability there had to be institutions that are responsible for the vibrancy of the world economy.

The meth and the World Bank were created. Then we have never had in our seventy six years of history anything as profound as the crisis of last year. And this it is the worst economic crisis since the Great Depression, and it is a crisis like no other because for the first time, the whole world is impacted, and we call sious lee put our economies instant. Still, we stopped producing, we stopped consuming. That has translated, of course, in tremendous pain.

While the pandemic is a a source of pain, but also the economic consequences because so many people lost their jobs and their livelihoods as a result. And for us that d m F, what it meant was two very rapidly scale up financial assistance. And I'm very proud to say we have never done so much so fast. We have provided provided financial lifelines to eighty three countries, eighty three of our members, and among them nearly fifty are low income countries. Without the financing from the IMMF, they

virtually would have faced a economic collapse. People would have been dying just because of lack of money. That's such important work that the I m F does, and it's so crystal Claire in a moment like this, why it matters so much? You know, you had talked about the

severity of what you've been through. Eighty three countries already desperately needing support at this moment, But we are barely into a year of the pandemic, and we know that there's still probably months and months and months, uh and a lot of it going to be felt in the emerging world of conditions that will continue to be exacerbated. Is that something that puts a great deal of additional pressure on you just thinking about that? Oh, yes, definitely,

that's uh uh. Let me first say that, fortunately we got last year a big reinforcement of our lending capacity and our concessional lending capacity, in other words, ability to help poor countries. We have we can up to one trillion dollars. So far, we have extended two hundred and eighty billions of lending, over a hundred billions just this last months, so we have capacity to land and we are working very hard to further extend our concessional capacity

ability to help the poorest countries. What we see ahead in this year one are three very big priorities. One of course, to bring the health crisis to an end, and unfortunately it is not happening so easily because the race between the virus and the vaccine UH is hitting up with more variations of the virus coming up, and

it is a race that that is very uneven. The advanced economies have better capacity, stronger health systems, more many more fiscal space as we call it, to vaccinate their people. Low income countries are faced with a tremendous difficulty and we are loud and clear in our message that vaccination has to happen everywhere for everyone. In fact, if we vaccinate poor countries quickly, the world economy as a whole will benefit because growth going cup will also translate into

better economic opportunities for the richal world. We calculated that we can get five trillion dollars in the next to three years just by accelerating vaccination and finishing it on time, and up to nine trillion by twenty five more for the world to share would go to the poor countries of this benefit is for the for the richal world. So our message to to advanced economies to reach the countries is it is in your self interest to help

everybody UH complete that mass vaccination we are going forward. UH. Secondly, it is very important that policy support for vulnerable people and vulnerable parts of the economy continuous. Why because we are not yet at full speed, and we will not be at full speed for quite some time. So what is being discussed in UH, For example, in the United States,

should there be an additional stimulus? The answer from the I m F is yes, we need to continue with that support UH and then look at how we can re energize growth in a way that helps us to make the turn towards the new climate economy, to support growth that is low carbon and climate resilient, and to accelerate digitalization for everyone. Because one thing the FUND is worried,

I'm worried, is that this crisis is exacerbating inequalities. UM who is hit the hardest, low skilled workers, women, young people, and so we want to see that being an objective to to arrest and reverse inequality. And last but not least to do it. Also between rich and poor countries. What we see today is a very dangerous strength of divergence between the rich and the poor world if we

don't arrest it. Not only this is devastating for people in poor countries, but it would undermine security and stability for everyone. So a lot to do in one I'm optimistic that this crisis has awakened in across the world a sense of what priorities must be, that we ought to work for a world that is that is green,

and that is inclusive and equitable. She made so many really important points, and what you just said, and this message about we're all in this together, and if we get everyone vaccinated in the United States, that's not enough. Everybody's got to be vaccinated, and economic growth and the betterment of each and every one of us has nched on it. So all the best to you and to the I m F, and to all of us that we do our part to really be part of this

great cooperative effort that has to be undertaken. Thank you for raising all of those points and for injecting climate into this discussion as well, because we know that is a crisis that we are still to confront and its enormity. Let me turn to something that I have personally witnessed about you, and that's your strong commitment to gender parity. And I know and I watched as you took over the helm of the i m F. You have said under your leadership at the i m F that you

would have a relentless focus on gender equality. Tell us why that's important to countries, why it's important to economies. It is a crucially important for a very simple reason. We all benefit when when women are in hoo did h. In my former job at the World Bank, we asked the question how much more we would get as a world as well if we wake up tomorrow with gender

equality everywhere? And the answer is staggering over lifetime of people, we would get a hundred and seventy two thrillion dollars more for the whole world only if we manage to bring gender parity everywhere. At the Fund, our job is to help economies ride well they want unless they overcome the obstacles for women to participate in the labor market, to have ownership of facets, to be included in the finance financial system, and to be on each and every

one of the parameters of inclusion equal to men. And I'm very proud to be the second woman. Very grateful to Christine Legarde. She broke the glass ceiling, so when I came no cuts, I can just walk. It's so done, uh, And I take it to heart that I will relentlessly pursue that objective. We are a strong institution and we have to use this strength for good. Excellent. You know, I endorse every word that you uttered, howheartedly, senecas one

hundred women to hear. Will be back after the short break. You mentioned that glass ceiling. Here you are the head of the International Monetary Fund. Christine Legarde has gone on to become the President of the European Central Bank, and if approved, Janet Yellen will become the United States Secretary of the Treasury. So what do you think this means to have three extraordinary women overseeing such vast sectors of

the world's economy. And maybe you could add to your answer, what do you think women bring to the practice of the economy, Because we really rarely talk about women and economics and the same breath. What I see is the world come into its sense. He's recognizing that giving more

authority and responsibility of two women benefits everyone. I'm so excited that somebody is so professional, so experienced, and so dedicated to the public goods, like Janet Yellen is going to be heading the Treasury Department in the United States. What is important to recognize is that not only tapping into the potential knowledge and skills of women is just doing a simple economics. You have a reservoir of talent and productivity that is underutilized. You bring it on board.

This matters. What matters even more is that women bring different perspective, They have different ideas there. They tend to be more inclusive, they tend to be more willing to find space for compromise. Uh. And those are skills that are so very critical in a fast moving world because when changes happening so rapidly, you have to have agility and ability to find this space for for compromise and inclusion.

And therefore women contribute tremendously in that regard. From my own experience, I also have seen women being so tremendously responsive. So you give a compliment to a woman, how does she take it? The bar has gone up. I have to do even better, and that is so powerful in organizations and in in countries and companies to constantly strive to do better, which which I am. I am confident

women bring up. I want to tell you my favorite favorite saying is of Eleanor Roosevelt, very appropriate for the crisis we are in. She said women are like e back, We don't know how strong we are until you put the same hot water. And that is my last point. Women are we are now in hot water. And you see countries led by women, organizations led by women, they

do wow, because boy, we're strong. Now. That's a really good point, and I must tell you it is one of my favorite sayings as well, because you know, I worked with Hillary Clinton when she was first Lady, and there was a lot of hot water that was often created that one had to somehow overcome when it's put in your path. But there's a lot of troubles today that have to obviously be overcome and dealt with. And to have all of these wonderful strong leaders like yourself

is really gratifying. You've had a very fascinating family history, So let's talk about Crystalalina just a little bit. Your great grandfather was a nineteenth century revolutionary, considered to be one of the founding fathers of Bulgaria. You grew up on the other side of the Iron Curtain, and you know, I think the Communists took over Bulgaria in what was that n or somewhere around then. So you've had these deep experiences in the formative part of your life in

many ways. So could you tell us a little bit about your childhood and growing up and how that perhaps contributed to your being the extraordinary leader you are today. I was very fortunate to grow up in a loving family. My mother and my father never treated my brother and me differently, So I grew up with this sense that we are equal, and that was very helpful in my

in my life. But I also have gone through a tremendous a struggle first um, getting the wall of restricting my opinion to be spoken, and having this many many occasions. I was a professor, I would teach, I would go home and I know I crossed the line in the kind of in the communist ideology, and I would worry about it, and every so often I would actually slap slightly, you know, slapped on the on on the hand. But it gave me that strength that we ought to be

always um pursuing with integrity what we believe in. But the most important part of my life that prepared me to lead the many many years later, was my country went through through tremendous economic collapse after the collapse of communism. Our economy went barely up. We had hyper inflation shon and my mother lost her life long savings virtually within two days. I had to get up at four o'clock in the morning to queue to buy milk for my daughter. So I saw first hand the damage of bad policies.

But I also saw, and it was with the help of the IMF, how a country can turn a course for the better and bring the benefits of good policies. The most important lesson I learned in my life is very simple. Change for the better is unstoppable. It may take time, it may take struggle, but it will come. And that relentless pursuit of betterment of people, of communities and countries, the pursuit of a more prosper us, an inclusive world, it is worth doing because change is unstoppable.

And I see now in this crisis, and I can tell you I worry tremendously about reversals on gender equality very very serious threat. Women are hit disproportionately by COVID because many of them, many more than men, are in the contact dependent sectors. They're losing their jobs in big numbers. Many women in developing countries are in the informal economy, so help cannot easily reach out to these women because when a job cuts start, women are the first to go,

and we see it in unemployment numbers. Because the crisis has also unleashed some of the bet phenomenon we have, like violence against women, and it is hugely important that especially women like me in position of authority, to be loud and clear that reversal ought to be stopped and we have to pursue equality in all aspects and gender equality we weren't there to begin with. We cannot afford to sleep backwards. Look, on average, a woman in this world has only three quarter of the legal rights of

a man. This is where we are going. Backwards means that we are going to make not only women short of reaching their full potential, but countries, communities, families poorer as a result. That to stop, well, and how important your experience, your personal experiences. You know, as you were talking about going out to to get milk for your daughter in a time of severe economic downturn. To have had that personal experience and now be in the position that you're in in in managing the I m F.

It's an extraordinary story. And I think it says a great deal about the empathy and understanding and compassion along with the great economic background, uh, and perspective and experience you've had. These joined together to make you be who you are and where you are at this place, at this moment in our history. So I just have one minute left. Uh. I mean maybe we heard it in your answer, but what makes you, at this very difficult time the ragmatic optimists that you say that you are.

What makes me an optimist is that historic friend. We have all experience, we go through tough times, but we are so resilient and so inventive that we can overcome these difficulties. The history of my country, the history of my family, it is all history of setbacks and then perseveres success coming out of it. And also the fact that I look around and I see so much alignment of people who recognize in this crisis that we do need to help each other, We need to support each

other and we can overcome. Just look at the speed with which vaccines have arrived. My I want to finish on the source of my optimism, uh and it is having seen multiple times in the worst of crisis, how the best of people comes through, how people are the first responders to shocks like hurricanes, h fires, disasters of

any kind. But here is the problem. Hate is very loud, Goodness is very quiet, and our job, all of us, the pragmatic optimists of this planet, is to amplify these voices of goodness and make sure we all understand it. This is the power we possess and we must deploy in all we do. Thank you so much those voices of goodness and the appeal to that. It is the message for now, for sure. So, Crystalina Gargiova, it is a pleasure to have had this conversation with you today.

You've not only made us so much smarter, but you've inspired us. And I know I speak for many when I say that, So thank you so so much, and all the best to you in the extraordinarily challenging job that you have. Thank you, thank you very much. Talking with Krystalina Gergiova gives me such hope for the future. Here are three things I took away from that conversation. First, the world is starting to recognize the importance of bringing

women into every level of leadership. Government and institutions clearly benefit from women's perspective, and women's skill at affecting compromise and inclusion are critical at this moment in history. Second, women's economic equality is the key to global progress, and that means removing obstacles that keep women from participating as full equals in the labor market and financial systems. Achieving that goal could add a hundred and seventy two trillion

to the world's economy. Finally, in order to move past the current crisis, we all need to be pragmatic optimists. We need to look around and see the good that has been accomplished by people working together, and then we need to amplify and add to those acts of good. As Crystallina says, this is the power we all possess. Yeah, tune in next Thursday to hear about our next featured woman and discover why she's one of Seneca's one Women

to Gear. Seneca's one hundred Women to Hear is a collaboration between the Seneca Women Podcast Network, and I Heart Radio, with support from founding partner PNG, have a great day.